Citi Fined $3 Million for Prospectus Delivery Problems

Citi Discovered the Problem in January 2011 and Reported It to Finra

Citigroup Inc. has to pay a $3 million fine for failing to send prospectuses for exchange-traded funds to more than 250,000 brokerage clients.

The Financial Industry Regulatory Authority Inc. disclosed on its website Friday that it censured the nation’s third-largest bank by assets earlier this week for failing to deliver prospectuses for about 160 ETFs from 2009 through April 2011, in more than 1.5 million ETF purchases.